Illegal Import of Luxury Cars from Bhutan: ED Raids 17 Locations Across Kerala and Tamil Nadu Under FEMA

The Directorate of Enforcement (ED), Kochi Zonal Office, conducted coordinated search operations across Kerala and Tamil Nadu under the Foreign Exchange Management Act (FEMA), 1999, exposing a network involved in the illegal import of high-end vehicles from Bhutan using forged documents and unauthorised forex channels. The operation uncovered widespread smuggling, fake No-Objection Certificates, and illegal sale of dismantled foreign vehicles without customs clearance.

Background:

On 08.10.2025, the ED conducted simultaneous searches at 17 premises in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, Coimbatore, and Chennai. The searches targeted a network led by Sathik Basha and Imran Khan, partners of M/s Shine Motors, Coimbatore. Preliminary inputs indicated that the duo illegally imported used vehicles from Bhutan by using forged No-Objection Certificates and routed payments through unauthorised foreign channels.

Findings:

During the searches, ED seized incriminating materials including forged NOCs, bank details, electronic devices, WhatsApp chats, and buyer lists. Statements recorded under Section 37 of FEMA revealed that the accused procured about 16 vehicles from Bhutan between 2023–24 through a Bhutanese intermediary, Shri Sha Kinley, an ex-Army personnel. Vehicles were smuggled via the Indo-Bhutan border at Jaigaon, transported to Coimbatore without customs clearance, and dismantled for sale across India, primarily in Kerala, Tamil Nadu, and Maharashtra. Payments were received in cash or in personal accounts, and neither accused possessed a valid Import-Export Code.

Violations and Legal Provisions Involved:

The investigation established prima facie violations under Sections 3, 4, and 8 of the Foreign Exchange Management Act, 1999, concerning unauthorised foreign-exchange dealings and acquisition of foreign assets.

Court / Agency Action:

The seized records are undergoing forensic analysis to trace the money trail and identify linked foreign accounts. The ED is coordinating with Customs, State RTOs, and other enforcement agencies to confirm illegal imports and proceed with prosecution.

Court Opinion / Enforcement Stand:

The ED stated that the operation revealed a sophisticated network exploiting porous borders and digital platforms to evade customs duties and launder money. The agency emphasised its ongoing commitment to dismantle hawala transactions, cross-border smuggling, and forex violations undermining India’s financial system.

Provision Concerned:

Foreign Exchange Management Act, 1999 — Sections 3, 4, and 8.

Agency: Directorate of Enforcement (ED), Kochi Zonal Office

Date of Operation: 08 October 2025

Act Invoked: FEMA, 1999

Places Searched: Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, Coimbatore, Chennai

Key Persons: Sathik Basha, Imran Khan (Partners, M/s Shine Motors)

Status: Further investigation underway